Italy’s Top Bank Dumps Bitcoin ETF for SpaceX Stock

Intesa Sanpaolo, the biggest bank in Italy, just made a major shift in its investment strategy. Recent regulatory filings show the bank bought a $966.42 million stake in SpaceX, grabbing 5.66 million shares. This new position instantly became the largest single holding in the bank's entire United States portfolio.

At the same time, the bank drastically pulled back from digital assets. Intesa cut its holding in BlackRock's spot Bitcoin exchange traded fund by 94 percent, reducing its shares to just over 40,000. The bank also bought put options on the Bitcoin fund, showing a defensive stance as the leading cryptocurrency faced a rough second quarter with sliding prices.

Intesa is not the only major institution leaning toward Elon Musk's aerospace firm. Both Harvard Management Company and the University of California disclosed huge multi billion dollar and near billion dollar stakes in SpaceX respectively. Even though SpaceX holds thousands of Bitcoin on its own balance sheet, giving these institutions indirect crypto exposure, the move highlights a clear preference for traditional equity shares during market uncertainty.

Traders should keep an eye on institutional portfolio shifts as the broader market finds its footing. While direct crypto investment funds saw heavy outflows recently, institutional backing for high profile equities remains strong. Watch for future regulatory filings to see if other major financial players follow this trend.